During Q2 2007, AMD regained 2.5 percentage points on its world share of the microprocessor market from its arch-rival Intel which, in turn, suffered a 2 percentage point decrease according to the latest figures from market watcher iSuppli.

AMD's total quarter-on-quarter market share gain was greater than the 0.5 gain originally anticipated. That said, the struggling chip maker is still down 3.1 percent year-on-year, from last yearís 16.4 percent in the second quarter to its current 13.4 percent, and is way behind Intelís dominant position with a 78.8 percent portion of the market.

AMD appears to be succeeding at its strategy of winning microprocessor market share by lowering prices. However, the company wonít be able to maintain such an aggressive pricing strategy in the long term if it expects to turn a profit. The stakes are high for AMD with Barcelona (and the upcoming Phenom for desktops), as the company is betting on its single-die quad-core chips to claw back market share lost to Intel.